Tether Excess Reserves Surge to $3.38B, Big Win For USDT

Tether Excess Reserves Surge to $3.38B, Big Win For USDT

Time Stamp: August 1, 2023 3:39 AM
1 hour ago 2 mins read category : News
  • Tether Holdings Limited’s Q2 of 2023 attestation shed light on its steady growth.
  • Tether’s Excess Reserves rises to $3.3B.
  • The brand’s CTO shares his joy over this news.

Tether Holdings Limited‘s second quarter of 2023 is out. The attestation confirms the accuracy of Tether’s Consolidated Reserves Report (CRR) as of June 30, 2023. In particular, this shows how Tether offers boosts transparency into the brand’s reserves. 

In detail, Paolo Ardoino, Tether’s CTO, shares immense pride in the recent reserves attestation. He stresses the brand’s unwavering commitment to transparency. He stated that transparency is not just a buzz word for Tether but a core philosophy that fosters trust and reliability. 

Ardoino adds how Tether aims to set new industry standards and inspire others to follow suit. They hope this will drive innovation and accountability in the global financial ecosystem. One significant revelation in the CRR is Tether’s indirect exposure to US Treasuries held by Money Market Funds and the US Treasuries collateralizing its Overnight Repo. 

Tether Raises the Bar for Stablecoins

Additionally, Tether has boosted its excess reserves by around $850 million. This brings the total excess reserves to around $3.3 billion by the end of Q2. To highlight, these excess reserves are Tether’s own profits. They are kept on top of the 100% reserves backing all outstanding tokens, contributing to the stability of the stablecoin.

With recent concerns about under collateralization in the banking and crypto industries, Tether’s proactive risk management decisions have fortified its community, retaining almost an additional 4% of assets within its reserves.

Tether’s operational profits for the second quarter amounted to over $1 billion, marking a significant 30% increase in comparison to the previous quarter. The stablecoin issuer also revealed a share buyback of $115 million, demonstrating its consolidation efforts to strengthen the shareholder group. 

Moreover, Tether invested in energy-related initiatives using the profits from this quarter. This explains the difference between announced profit and the increase in excess reserves. Specifically, Tether’s reserves are highly liquid, with 85% of investments held in cash and cash equivalents.

Combining the direct and indirect exposures to US Treasury bills, the amount of Treasuries supporting Tether’s stablecoins reaches approximately $72.5 billion. The CRR, supported by the BDO attestation, reaffirms that Tether’s consolidated assets surpass its consolidated liabilities, instilling further confidence in the stablecoin’s financial strength.

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